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Fertiliser giant lowers profit target
Phu My Fertilisers (DPM) has lowered its profit targets this year to VND990 billion (US$55 million), 28 per cent less than last year’s figure, but an economist has commented that such a profit would still be impressive in the context of the current economic situation.
Last year its earnings per share (EPS) were more than VND3,600 compared to the market average of nearly VND2,400. This year, its EPS is expected to go down to VND2,600.
According to economist Dinh The Hien, a more modest earnings target was reasonable due to fierce competition with domestic rivals and off-quota imports from China.
Domestic fertiliser prices were also expected to track the decline in international prices, Hien said.
Several new fertiliser plants were expected to begin operations soon, including a facility in the northern port city of Hai Phong with an annual capacity of 330,000 tonnes; a 560,000-tonne plant in the northern province of Ninh Binh; and an 800,000-tonne plant in the southern province of Ca Mau.
Hien noted that DPM continued to have advantages in the domestic market, including a strong brand name, advanced technology, and its status as a member of the PetroVietnam Group, which provides it with gas supplies.
VietNamNet, Viet Nam News
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